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What Ikea does right

March 16, 2009

It’s difficult to visit an Ikea store and not leave as a fan.

It’s also difficult to leave without at least a little something in your hand (a cutting board for me and candy for, er … my daughter).

Now that I’ve wiped away any attempt at objectivity, here’s my take on some of the things that make Ikea a success. I recently visited the new Charlotte, N.C., store on grand-opening day.

Ikea works at saving consumers money and it’s not shy about letting them know it. In the restaurant, where you can get a hearty breakfast of scrambled eggs, bacon, potatoes and more for $1.99, a sign asks you to clear the table when you’re done — because your small effort saves you money. The same goes with the furniture — flat packs save you money. A little elbow grease saves you money.  Suddenly everything in the store looks priced to steal.

Even as you’re checking out, Ikea tries one more time to save you money. Instead of a credit card, pay with your debit card and you’ll get 3% off the purchase. Ikea is refunding the normal cost of a credit card transaction to you. Brilliant.

Ikea knows how to draw the crowds and create excitement.  Even on the rainy, cold opening-day morning of my visit, customers who had been waiting in line (some for days) didn’t seem the least bit cranky. (You can meet some of them in a video here.)

Ikea kept the crowd entertained in the final hours with a band and beach balls. When they finally did get into the store, the customers were greeted with the rousing cheers and applause from Ikea employees in a celebration that seemed to last half an hour, or as long it took to get the line of 2,000 or so people through the doors.

Cross merchandising/mass merchandising. All room vignettes in the furniture showroom are fully accessorized with items that are for sale and at your fingertips. If you’re browsing through a dining room vignette and you happen to like the wine glasses or the runner on the table, chances are you’ll find a big display of them just feet away in a bin or on a shelf.

Employees are treated right. For several years running, Ikea has been ranked on lists of “best companies to work for.” In this economy, the retailer’s focus on human capital development may not seem as important, because so many people today are simply thankful to have a job — any job. But in the long run it makes for a stable, loyal workforce.

And it all adds up to lots of customers who are also fans.

Posted by Clint Engel on March 16, 2009 | Comments (5)

February 16, 2012
In response to: What Ikea does right
Braxton commented:

Big fan of IKEA! Industry can learn alot from them. Thanks for the reminder. Will have to visit again soona and go to school! Brax


May 21, 2009
In response to: What Ikea does right
Cesario commented:

And what they do wrong...force you to walk through an entire 2-story maze just cause you needed to by 1 extra spoon that matches the set you had already purchased. BTW... their shortcuts are hidden and don't really reduce the walking very much.
-Cesario www.directfactoryfurniture.com


March 24, 2009
In response to: What Ikea does right
what IKEA does right commented:

Great to hear that we have so many fans out there. I work myself for IKEA in Sweden and have been a fan for the last 25 years. I hope you will enjoy many more exiting visits to IKEA!


March 18, 2009
In response to: What Ikea does right
Katherine C commented:

I've yetto visit but will do so soon!Sounds exciting!I love your finish of the retailers'great work environment.


March 17, 2009
In response to: What Ikea does right
IKEA commented:

Always been a fan of IKEA. I enjoyed your story. I join with the excited consumers on the opening of the Charlotte store.

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